THEORY OF TAX COLLECTION

According to R. Santoso Brotodiharjo SH, in his book Introduction to Tax Law, there are several theories that underlie the existence of taxation, namely:

    Insurance theory, according to this theory, the state has a duty to protect its citizens from all interests both safety and the safety of their belongings soul. For the protection necessary expenses like insurance agreement required the payment of premiums. Tax
payment is considered a premium payments to the state. These theories are contested because the state should not be confused with the insurance company.

The theory of interest, according to this theory, the basis of taxation is the interests of each citizen. Including the interest in the protection of life and property. The higher the interest rate protection, the higher the taxes to be paid. These theories are contested, because the fact that the level of protection of the interests of poor people is higher than the rich. There are social security protection, health, and others. Even the poor are exempt from the tax burden.